Kathmandu, July 15
The price of precious metals bobbed in the week of July 9 to 14, but held steady when compared to the first and last trading day.
Gold demand fell in India — the second biggest consumer of the yellow metal — in the week, despite a correction in local prices as consumers advanced purchases in June before the rollout of a new nationwide sales tax. Elsewhere in Asia, a spurt in buying was short-lived as global prices recovered.
Gold price had gone up on a weaker dollar and lower US yields after Federal Reserve Chair Janet Yellen said the Fed would only gradually tighten monetary policy, curbing speculation that interest rates would rise more than once this year.
“While a weaker dollar could be helpful for gold over the short term, the continued strength in US equities remain a drag,” Reuters reported.
The US economy is healthy enough for the Fed to raise rates and begin winding down its massive bond portfolio, although low inflation and a low neutral rate may leave the central bank with diminished leeway, Yellen said on Wednesday.
Lower yields reduce the opportunity cost of holding non-yielding gold, while a weaker dollar makes bullion cheaper for non-US investors.
In the domestic market, Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had fixed rate of gold at Rs 53,000 per tola when market opened for trading on Sunday. The price of yellow metal dipped by Rs 200 a tola to Rs 52,800 per tola on Monday and was unchanged the next day. On Wednesday, bullion price surged by Rs 400 a tola to Rs 53,200 per tola and went up by Rs 100 a tola to Rs 53,300 per tola on Thursday. On Friday, however, gold price fell by Rs 300 a tola to Rs 53,000 per tola.
Similarly, FeNeGoSiDA had set rate of silver at Rs 710 a tola on Sunday. The next day, silver price dipped by five rupees per tola to be priced at Rs 705 a tola. Its price remained same on Tuesday. On Wednesday, the price of the white metal went up by Rs 10 per tola to be traded at Rs 715 a tola and remained steady on Thursday. On Friday, silver price dipped by five rupees per tola to Rs 710 a tola.
A version of this article appears in print on July 16, 2017 of The Himalayan Times.